1. A valid construction contract generally requires:

1. Offer, acceptance, consideration
2. A perfect set of drawings
3. An oral promise only
4. No authority needed

2. Who should sign the contract for a corporation?

1. Any field employee
2. An authorized officer per resolution/bylaws
3. The supplier
4. The insurer

3. The order of precedence clause helps resolve:

1. Payroll disputes
2. Conflicts among contract documents
3. OSHA inspections
4. Sales tax

4. Written change orders are important because they:

1. Decorate the file
2. Modify scope/price/time with proof of approval
3. Replace the contract
4. Avoid signatures

5. “Pay-when-paid” is best described as:

1. A schedule requirement
2. Timing language for payment to a sub
3. A safety rule
4. A lien waiver

6. A “pay-if-paid” clause generally attempts to:

1. Guarantee sub payment
2. Shift the risk of owner nonpayment to the sub
3. Set bonding limits
4. Replace retainage

7. RFIs should be used to:

1. Change scope without approval
2. Clarify documents and create a written record
3. Replace submittals
4. Avoid notices

8. A schedule delay caused by unusually severe weather is typically:

1. Non-excusable
2. Excusable
3. Always compensated
4. Safety only

9. Differing site conditions should be handled by:

1. Proceeding without notice
2. Prompt notice and await direction per contract
3. Ignoring contract
4. Billing later without backup

10. Submittal approval generally:

1. Changes scope automatically
2. Does not change scope unless formally approved by change order
3. Eliminates RFIs
4. Sets retainage

11. A schedule of values is used to:

1. Assign equipment
2. Break down contract price for progress billing
3. Replace insurance
4. Track safety

12. A conditional lien waiver should be exchanged:

1. Before any payment information
2. Upon receipt of payment
3. Upon proof of payment clearing
4. At bid time

13. “Hold harmless” language is a form of:

1. Indemnification
2. Warranty
3. Schedule float
4. Bid alternate

14. A unit-price contract is best when:

1. Quantities are uncertain
2. Design is complete and fixed
3. No measurements are needed
4. Only lump sum is allowed

15. Cost-plus with a GMP means:

1. No cap on cost
2. Costs plus fee, capped at a guaranteed maximum
3. No fee
4. Time & materials only

16. A written notice requirement typically specifies:

1. Nothing
2. How and when to give notice, and to whom
3. Only oral notice
4. Owner signature color

17. Who is responsible for verifying sub COIs/endorsements meet contract terms?

1. Owner
2. GC/contractor
3. Bank
4. Inspector

18. Retainage is:

1. Late fees
2. Amount withheld until milestones/substantial completion
3. Bond premium
4. Sales tax

19. Flow-down clauses in subcontracts:

1. Are unrelated to the prime contract
2. Bind the sub to key prime contract obligations
3. Eliminate insurance
4. Replace safety rules

20. A “for convenience” termination allows the owner to:

1. Terminate only for default
2. Terminate without contractor fault, per contract terms
3. Ignore notice
4. Eliminate payment

21. A punch list is created to:

1. List change orders
2. Document incomplete or defective items to finish
3. List vendors
4. Record payroll

22. Warranty periods usually start at:

1. Notice to proceed
2. Bid opening
3. Substantial or final completion per contract
4. Permit issuance

23. If an owner issues a change directive, the contractor should:

1. Ignore it
2. Proceed while preserving rights and converting to a signed change order per the contract
3. Stop all work
4. Bill at the end

24. Subcontractor substitution may be allowed:

1. Never
2. Only per the rules in the contract/solicitation
3. Any time
4. Only with bank approval

25. The best defense against “scope creep” is:

1. Oral promises
2. Clear scope and written change orders
3. No documentation
4. Weekly parties

26. Submittal logs track:

1. Payroll
2. What was submitted, reviewed, returned, and due
3. OSHA inspections
4. Bond riders

27. A written claim without backup is likely to:

1. Succeed
2. Fail
3. Become a change order automatically
4. Stop retainage

28. Daily reports help:

1. Decorate files
2. Prove manpower, equipment, weather, and impacts
3. Replace contracts
4. Set taxes

29. “Substantial completion” generally means:

1. Work is 50% done
2. Work is sufficiently complete for its intended use
3. Design is finished
4. Closeout is waived

30. If the owner suspends work, the contractor should:

1. Ignore
2. Secure site, document costs/time, and follow contract notice
3. Abandon project
4. Stop paying subs

31. Back-charges should be:

1. Verbal
2. Documented with notice and cost detail per contract
3. Hidden
4. Paid in cash

32. Liquidated damages (LDs) are:

1. Punitive fines
2. Pre-agreed damages for late completion
3. Taxes
4. Bond premiums

33. A “no damages for delay” clause generally:

1. Guarantees cost recovery
2. Limits recovery to time extensions for certain delays
3. Creates warranties
4. Sets retainage

34. A BIM execution plan relates to:

1. Insurance
2. Digital coordination requirements
3. Payroll
4. Permits

35. If a sub refuses to sign required flow-down terms, the GC should:

1. Proceed anyway
2. Hold award until the subcontract matches the prime obligations
3. Remove insurance
4. Ignore safety

36. An RFI is not a substitute for:

1. Change order
2. Daily report
3. Schedule
4. Submittal

37. “Time is of the essence” means:

1. Schedule dates are material terms
2. Time is flexible
3. No schedule
4. Only final date matters

38. A dispute resolution clause may require:

1. Meditation
2. Mediation
3. Meteorology
4. Metallurgy

39. A claim for concealed conditions should include:

1. No photos
2. Photos, measurements, cost/time impact, timely notice
3. Only weather logs
4. Only emails

40. Engineers/architects typically:

1. Set bond rates
2. Interpret the contract documents and review submittals
3. Run payroll
4. Own the project

41. A contingency line item is used for:

1. Profit only
2. Unknowns within the contractor’s scope
3. Paying taxes
4. Owner’s fees

42. A “pass-through” claim allows:

1. Sub’s claim to be presented by the GC to the owner
2. Owner to claim against sub directly always
3. Designer to claim bond
4. Bank to claim LDs

43. If a schedule impact is likely, the contractor should:

1. Wait until closeout
2. Issue timely notice and update the critical path schedule
3. Ignore CPM
4. Stop all work

44. “No oral modifications” means:

1. Oral changes are okay
2. Changes must be in writing as required by the contract
3. Text messages suffice always
4. RFIs are enough

45. A T&M ticket supports:

1. Lump-sum only
2. Force-account or extra work tracking
3. Payroll taxes
4. Insurance audits

46. An executed change order should adjust:

1. Scope only
2. Scope, price, and/or time
3. Insurance only
4. Bonds only

47. A “cardinal change” refers to:

1. A minor field tweak
2. A fundamental change beyond the contract’s general scope
3. Seasonal adjustment
4. Punch list

48. Closeout often requires:

1. No documents
2. As-builts, O&M manuals, warranties, final waivers
3. RFIs only
4. Bid forms

49. Payment apps should include:

1. Approved change orders and retainage
2. Only base bid
3. No signatures
4. Safety logs

50. The purpose of a notice-to-cure is to:

1. Terminate immediately
2. Give the other party a chance to fix a default within a set period
3. Replace the default
4. Approve COs

51. A “final completion” certificate usually means:

1. Work can begin
2. All contract requirements, closeout, and punch list items are done
3. Design is 90%
4. Owner paid deposit

52. If an owner requires Additional Insured status, the contractor should provide:

1. Only a COI
2. COI plus the required AI endorsements matching contract language
3. No documents
4. Bid tab

53. “No waiver” clauses state that:

1. Rights are waived by silence
2. Not enforcing a right once doesn’t waive future enforcement
3. All rights are gone
4. Time is flexible

54. A progress payment usually requires:

1. Nothing
2. Proper invoice, updated schedule of values, waivers, and certifications as required
3. Only a text message
4. Final completion

55. Force majeure events are typically:

1. Predictable and controllable
2. Unforeseeable events beyond control (e.g., natural disasters)
3. Bid alternates
4. Insurance endorsements

56. “Back-to-back” timelines in a subcontract mean:

1. Different deadlines
2. Sub must meet the same notice/claim deadlines the GC has to the owner
3. No notices
4. Only verbal

57. If the contract requires written notices by email to a specific address, the contractor should:

1. Send texts
2. Follow the notice clause exactly (address, timing, subject)
3. Call only
4. Use social media

58. A bid alternate is:

1. Unauthorized change
2. An optional price for an alternative scope/material
3. A delay claim
4. A lien right

59. A “scope gap” occurs when:

1. Two subs claim the same work
2. No one has clearly included a portion of required work
3. The owner adds an alternate
4. The schedule is early

60. The best time to raise a drawing/spec discrepancy is:

1. After final completion
2. Immediately via RFI/notice before it affects cost/time
3. At warranty
4. Never